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Status: You are viewing the version of the handbook as on 2005-06-30.

MCOB 11.2 Purpose

MCOB 11.2.1G

Principle 6 requires a firm to pay due regard to the interests of its customers and treat them fairly. This chapter reinforces Principle 6 by requiring a firm in the circumstances described in MCOB 11.1.3 R to take account of a customer's ability to repay before deciding to enter into a regulated mortgage contract or make a further advance on a regulated mortgage contract. The FSA regards it as important that customers should not be exploited by firms that lend in circumstances where they are self-evidently unable to repay through income and yet have no alternative means of repayment.